Performance-related pay and gender wage differences
We study the impact of performance-related pay (PRP) on gender wage differences using Finnish linked employer-employee panel data. Controlling for unobserved person and firm effects, we find that bonuses increase womens earnings slightly less than mens, but the economic significance of the difference is negligible. Piece rates and reward rates, however, tend to increase gender wage differentials. Thus, the nature of a performance related pay plan is important for gauging the impact of PRP on gender wage differentials. A comparison with OLS results shows the importance of controlling for unobserved person and firm effects.
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- Amuedo-Dorantes Catalina & De la Rica Sara, 2006. "The Role of Segregation and Pay Structure on the Gender Wage Gap: Evidence from Matched Employer-Employee Data for Spain," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-34, April.
- de la Rica, Sara & Dolado, Juan J. & Vegas, Raquel, 2010.
"Performance Pay and the Gender Wage Gap: Evidence from Spain,"
IZA Discussion Papers
5032, Institute for the Study of Labor (IZA).
- de la Rica, Sara & Dolado, Juan J. & Vegas, Raquel, 2010. "Performance Pay and the Gender Wage Gap: Evidence from Spain," CEPR Discussion Papers 7936, C.E.P.R. Discussion Papers.
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